ements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the financial statements are issued or available to be issued.

Auditor's Responsibilities for the Audits of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that audits conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

To the Member BB Franchising, LLC

In performing audits in accordance with GAAS, we:

• Exercise professional judgment and maintain professional skepticism throughout the audits.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audits in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audits, significant audit findings, and certain internal control-related matters that we identified during the audits.

April 29, 2025

Balance Sheet

December 31, 2024, 2023, and 2022

Statement of Operations

Years Ended December 31, 2024, 2023, and 2022

| | 2024 | 2023 | 2022 | |-----------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|-----------------------------------|-----------------------------------| | Revenue Royalties Software fees | $ 3,311,061 $ 199,712 | 3,281,981 $ 176,501 | 3,376,582 209,105 | | Coaching, enrollment kit, and other revenue | 1,333,317 | 1,274,825 | 1,611,326 | | Advertising fees | 841,894 | 837,464 | 856,495 | | Franchise fees | 148,720 | 87,046 | 71,477 | | Total revenue | 5,834,704 | 5,657,817 | 6,124,985 | | Operating Expenses Franchise-related expenses License and administrative service fees Advertising and marketing expenses | 1,529,276 3,642,517 1,038,376 | 1,177,741 3,417,429 938,952 | 1,704,829 2,984,044 928,473 | | Total operating expenses | 6,210,169 | 5,534,122 | 5,617,346 | | Operating (Loss) Income | (375,465) | 123,695 | 507,639 | | Other Income (Expense) Other income Interest expense Other expense | 56,616 (5,988) - | 44,000 (5,652) (167) | 41,500 (5,765) (236,000) | | Total other income (expense) | 50,628 | 38,181 | (200,265) | | Net (Loss) Income | $ (324,837) $ | 161,876 $ | 307,374 |

Statement of Changes in Member's Equity (Deficit)

Years Ended December 31, 2024, 2023, and 2022

Statement of Cash Flows

Years Ended December 31, 2024, 2023, and 2022

| Thereafter | | 124,421 | |---|---|---| | | Total | $142,569 |

December 31, 2024, 2023, and 2022

Note 1 - Nature of Business

BB Franchising, LLC (the "Company"), a Delaware limited liability company, was formed on November 13, 2007 as a wholly owned subsidiary of Brain Balance Holdings, Inc. (the "Parent"). At December 31, 2024, the Parent also owns BB Corporate, LLC.

Source: Item 23 — RECEIPTS (FDD pages 72–292)